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Democratic Republic of Congo cobalt export ban encourages domestic processing
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Release time：2025-08-01
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The implementation of this ban is due to a significant drop in cobalt prices, resulting from increased cobalt production, particularly from two mines operated by China's Luoyang Molybdenum Group.
According to Bloomberg, citing the chairman of Congo's state-owned mining company, the Democratic Republic of Congo (DRC), the world's largest cobalt supplier, is seeking stable cobalt prices to promote domestic processing and stable market prices. The country, which accounts for about three-quarters of the world's cobalt supply, initially suspended cobalt shipments for four months on February 22, and later extended the suspension for three months in June. The ban was implemented due to increased cobalt production, particularly from two mines operated by China's Luoyang Molybdenum Co., Ltd., leading to a significant drop in cobalt prices.
The DRC's mining industry mainly exports cobalt hydroxide, primarily to China, for processing into battery-grade materials or metal. The chairman of the state-owned mining company stated that while the company's goal is not to push prices above $40 per pound, it believes ensuring price stability is the country's responsibility. The country is addressing oversupply issues, which have led to significant international stockpiles. Luoyang Molybdenum's trading arm, a major cobalt producer, recently declared force majeure on hydroxide deliveries, indicating increasing supply chain pressure. The report stated that the export ban significantly impacted China's imports of cobalt intermediates, with a more than 60% month-on-month decline in June, the first significant drop since the ban's implementation. Following Luoyang Molybdenum, Glencore and Eurasian Resources Group are two other major cobalt producers with significant operations in Congo. The state-owned mining company, Gecamines, holds a minority stake in a joint venture with these three companies. Meanwhile, Congo is forging a strategic partnership with the United States aimed at attracting investment in the country's copper, cobalt, lithium, and tantalum resources. This collaboration aims to weaken China's dominance over key minerals and their supply chains.
DRC leaders are considering long-term measures, such as potential post-ban export restrictions, to balance the market, support prices, and promote local refining. The chairman of the state-owned mining company stated that quotas are "meaningful" and stressed a pragmatic approach to achieving national goals.
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